Economic policy of Thatcher and Reagan: Monetarism

Monetarism(also called monetaryism), developed by American economist Milton Friedman, who won the 1976 Nobel Prize in Economics, is a thought-provoking theory of inflation and the state.
What, what is not? The current, developed by the chigago economics school led by milton friedman in the 1960s, which began in the 1950s, is an anti-keynesian reaction that derives its source from the classical quantity theory. The aim is to overcome inflation. interest rates are reduced, credit usage is increased and consumption is increased. It is the most important factor that changes the monetary income level of the money stock in the economy. It can be seen as a good method for the collapsing economy after wars. but the event isn't the money to cope with. In the 1960s and 1950s, the keynesian theory of the keynes lived in the developed industrial countries in the 1960s, and the helplessness to explain and overcome the economic problems, strengthened the development of monetarism.

After the 80s, the country's economic policy has directed this policy. the most solid followers are margaret thatcher england and ronald reagan america. Although domestic turkey are examples Özal period.
There are two great misconceptions about monetarism
1. monetarism means basing money.
monetarism is an approach that emphasizes the importance of money supply in macroeconomics management, and in essence, who is in the hands of money. the money supply should be well controlled, the money should be in the hands of the people who can use it correctly, and not all the pit winners should be scattered. The anti-inflationist features stand out here.

2. Monetarism is an alternative to keynesian approaches, revolutionized.
Monetarism is such an exaggerated macroeconomics approach that conditions so require. Keynes has already mentioned these issues while putting forward his theories about interest and money supply, but a particular understanding of monetarism has been marketed by bourgeois liberal economists as a revolution, especially since it was identified with great depression and keynesianism, planningism and statism after the Second World War. the first monetarists, especially milton friedman, accept keynes' theories, but have set out to bring different approaches and criticisms under changing conditions. especially the success of planned and controlled approaches in the wounding of Western states after the Second World War, they feared the liberals who said that they wanted to continue it when they were accustomed to planning.
As inflation and economic recession converged in the 1970s due to the impact of the oil crisis, there was the opportunity to make the propaganda of the entrepreneurs, the capitalist class, and the propaganda of solid money supply controls. Some people who called themselves monetarist against inflation increased interest rates, reduced the money supply and inflation was prevented despite the increase in unemployment. the hippies who wanted meatballs rather than breads, the communists broke down and interest and loans were loosened and the money was transferred to the entrepreneurs. this is an intrusive approach that keynes would approve, but his hero was shown as milton friedman and his ancestor as man smith, and reagan supporters offered the man smith formal ties for celebration victory.
on the other hand, before imposing a monetarist and neoliberal approach to developing countries as an imperative prescription for example by the developed western countries, it is worth considering the historical process leading to monetarism. If you are not wholeheartedly connected to a global agenda ...


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